Sony May Buy Renesas Fab

SAN FRANCISCO -- Sony is considering buying a chip fab from the Japanese company Renesas for $96 million.

Nikkei reports that Sony plans to expand its complementary metal-oxide semiconductor (CMOS) image sensor production. The company already has a share of around 30% in that market.

A memorandum of understanding between the companies could be signed early next week. Sony would acquire operating power at the Tsuruoka plant in Yamagata Prefecture by March 31, along with approximately 900 workers.

The Wall Street Journal reported that talks began several months after Renesas announced it would close the plant in two to three years. The company was bailed out by a government-backed fund, but it remains open to the possibility of selling the plant.

Sony has aggressively cut costs to turn around losses in its television sector while increasing its presence in smartphones and image sensors. OmniVision, a rival in the image sensor market, cited "intensifying competition" Tuesday in reporting its fiscal second-quarter results.

and Pixim was acquired by Sony a couple of years ago so perhaps this new technology will result end up in some big products over the next year or two. Pixim targeted Security Cameras but the wide dynamic range of the technology can be applied to the entire range of imaging applications...

@Junko: Quality of the output color is key factor. Sony CMOS image sensor output is so vivid and wonderful. Sony can have much bigger market share. However, it is very difficult for small or medium scale company to get its product.

Renesas' Tsuruoka fab was initially rumored to be sold to TSMC before Renesas became the Japanese government-owned company. Selling the fab to any company is much better than shutting it down, considering all the cost involved in closing a fab. Expect a bargain deal Sony may be getting here...

Sony's CMOS image sensors are designed into not only Apple's products but some of those by Samsung. In fact, when it comes to the higher megapixel CMOS image sensors (above 8 megapixels) Sony practically owns the market. Considering the CMOS image sensors are featured in not just smartphones, but also tablets and many more in automotive, I can easily imagine, I can easily imagine their production capacity is becoming an important factor.